Repo rate cut to give a leg-up to private sector investments: MPC minutes
The monetary policy committee (MPC) voted for a 50 basis points repo rate cut in its last meeting to give a leg-up to private sector investments, which have been weak despite high capacity utilisation and improved corporate balance sheets, and revive consumption demand. The six-member MPC, which met from June 4-6, voted by a 5-1 majority for a front-loaded policy repo rate reduction from 6 per cent to 5.5 per cent amid a benign inflationary outlook, even as they changed the monetary policy stance to “neutral” from “accommodative”. The RBI,...